Bridgepoint Education Reports Fourth Quarter and Full Year 2018 Results

SAN DIEGO, March 12, 2019 /PRNewswire/ -- Bridgepoint Education, Inc.
BPI, +4.15%
a provider of postsecondary education services, today announced the results for its fourth quarter and full year ended December 31, 2018 (which reflect the amended and restated results for its third quarter of 2018 as filed with the SEC on March 12, 2019 in its amended Form 10-Q for such period).

Financial Results for the Three Months Ended December 31, 2018

Revenue for the three months ended December 31, 2018 was $94.7 million, compared with revenue of $105.1 million for the three months ended December 31, 2017.

Operating loss for the three months ended December 31, 2018 was $13.6 million, compared with operating loss of $5.9 million for the three months ended December 31, 2017.

The Company recognized an income tax benefit of approximately $35,000 for the three months ended December 31, 2018, compared with income tax benefit of $0.5 million for the three months ended December 31, 2017.

Net loss for the three months ended December 31, 2018 was $13.4 million, compared with net loss of $5.1 million for the three months ended December 31, 2017.

Diluted loss per share for the three months ended December 31, 2018 was $0.49, compared with diluted loss per share of $0.18 for the three months ended December 31, 2017.

Non-GAAP Financial Results for the Three Months Ended December 31, 2018

Non-GAAP operating loss for the three months ended December 31, 2018 was $6.4 million, compared with non-GAAP operating loss of $4.2 million for the three months ended December 31, 2017. Non-GAAP operating loss for the three months ended December 31, 2018 excludes separation transaction costs of $3.2 million, and restructuring and impairment charges of $4.0 million. Non-GAAP operating loss for the three months ended December 31, 2017 excludes a legal settlement expense of $1.8 million and a reversal of restructuring and impairment charges of $0.1 million.

Non-GAAP net loss for the three months ended December 31, 2018 was $6.2 million, compared with non-GAAP net loss of $3.9 million for the three months ended December 31, 2017. Non-GAAP net loss for the three months ended December 31, 2018 excludes separation transaction costs of $3.2 million, and restructuring and impairment charges of $4.0 million, as well as the related tax effect. Non-GAAP net loss for the three months ended December 31, 2017 excludes a legal settlement expense of $1.8 million, a reversal of restructuring and impairment charges of $0.1 million, and the related tax effects.

Non-GAAP diluted loss per share for the three months ended December 31, 2018 was $0.23, compared with non-GAAP diluted loss per share of $0.14 for the three months ended December 31, 2017.

Financial Results for the Year Ended December 31, 2018

Revenue for the year ended December 31, 2018 was $443.4 million, compared with revenue of $475.1 million for the year ended December 31, 2017.

Operating loss for the year ended December 31, 2018 was $4.0 million, compared with operating income of $6.4 million for the year ended December 31, 2017.

The Company recognized an income tax benefit of $7.6 million for the year ended December 31, 2018, compared with income tax benefit of $1.2 million for the year ended December 31, 2017.

Net income for the year ended December 31, 2018 was $4.6 million, compared with net income of $9.1 million for the year ended December 31, 2017.

Diluted income per share for the year ended December 31, 2018 was $0.17, compared with diluted income per share of $0.28 for the year ended December 31, 2017.

Non-GAAP Financial Results for the Year Ended December 31, 2018

Non-GAAP operating income for the year ended December 31, 2018 was $12.0 million, compared with non-GAAP operating income of $16.2 million for the year ended December 31, 2017. Non-GAAP operating income for the year ended December 31, 2018 excludes a legal settlement expense of $0.1 million, separation transaction costs of $8.1 million and restructuring and impairment charges of $7.8 million. Non-GAAP operating income for the year ended December 31, 2017 excludes a legal settlement expense of $1.8 million and restructuring and impairment charges of $7.9 million.

Non-GAAP net income for the year ended December 31, 2018 was $13.0 million, compared with non-GAAP net income of $17.8 million for the year ended December 31, 2017. Non-GAAP net income for the year ended December 31, 2018 excludes a legal settlement expense of $0.1 million, separation transaction costs of $8.1 million, and restructuring and impairment charges of $7.8 million as well as the related tax effect. Non-GAAP net income for the year ended December 31, 2017 excludes a legal settlement expense of $1.8 million, restructuring and impairment charges of $7.9 million, and the related tax effects.

Non-GAAP diluted income per share for the year ended December 31, 2018 was $0.47, compared with non-GAAP diluted income per share of $0.55 for the year ended December 31, 2017.

Balance Sheet and Cash Flow

As of December 31, 2018, the Company had combined cash, cash equivalents, restricted cash (both current and long-term) and investments of $192.7 million, compared with cash, cash equivalents, restricted cash and investments of $207.6 million as of December 31, 2017.

The Company used $7.6 million of cash in operating activities during the year ended December 31, 2018, compared with $4.1 million of cash used in operating activities during the year ended December 31, 2017.

Student Enrollment

Total student enrollment at the Company's academic institutions was 38,153 at December 31, 2018, compared with total student enrollment of 40,730 at December 31, 2017.

About Non-GAAP Financial Measures

This press release contains non-GAAP financial measures for non-GAAP operating income, non-GAAP net income, non-GAAP diluted income per share, EBITDA and adjusted EBITDA, which exclude a legal settlement expense, restructuring and impairment charges, separation transaction costs, as well as certain income tax adjustments, as applicable. These non-GAAP financial measures are not prepared in accordance with U.S. generally accepted accounting principles (GAAP) and are not based on a comprehensive set of accounting rules. Management believes non-GAAP financial measures are useful in providing investors with an understanding of how specific line items in the consolidated statements of income are affected by items that may not be indicative of the operating results of the Company's core business. To the extent that other companies use similar methods in calculating and reporting non-GAAP operating results, the Company believes provision of supplemental non-GAAP financial information allows for a meaningful comparison of the Company's performance against the performance of other companies. The Company further believes that these non-GAAP financial measures provide useful information regarding its ongoing operating activities and business trends related to its results of operations, as well as a meaningful comparison with historical financial results. The Company's management and board of directors utilize these non-GAAP financial measures, together with the Company's financial statements prepared in accordance with GAAP, in developing operating budgets and evaluating the Company's performance. These non-GAAP financial measures are intended to supplement GAAP financial information, and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Refer to the accompanying tables for a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Participants can attend a live broadcast of the call at http://ir.bridgepointeducation.com. Call participants can also dial (877) 395-6119, or (647) 689-5537 internationally, and provide the conference ID 2798689. The broadcast of the call will be archived and available for one year.

About Bridgepoint Education

Bridgepoint Education, Inc.
BPI, +4.15%
harnesses the latest technology to reimagine the modern student experience through programs, technologies, and resources representing a unique model for advancing education in the 21st century. Bridgepoint stands for greater access, social learning, and exposure to leading minds. For more information, visit www.bridgepointeducation.com or www.facebook.com/BridgepointEducation.

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